Trump Plans to Sign Russia Sanctions Bill as India Faces Fresh Tariff Uncertainty

India faces a fresh layer of uncertainty in its trade relationship with the United States after President Donald Trump indicated he plans to sign legislation that could expose major buyers of Russian energy to tariffs of as much as 100%. 

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The Sanctioning Russia and Iran Act has already cleared the US Congress. Once signed into law, it would give the American president authority to impose higher duties on countries that continue buying Russian-origin crude oil or natural gas and rank among Russia’s five largest energy importers. 

For India, the development comes at a sensitive time. Trade and tariff negotiations with Washington are still underway, with no bilateral deal finalised yet. 

India is also one of the largest buyers of Russian energy. In June 2026, it was the second-biggest buyer of Russian fossil fuels, purchasing €5.5 billion worth of Russian hydrocarbons, according to data cited in the report from the Centre for Research on Energy and Clean Air. 

The proposed US legislation would allow duties of up to 100% on all goods entering the United States from a country covered by the provision if that country makes fresh purchases of Russian oil or natural gas after the law takes effect. 

That does not translate into an automatic 100% tariff on Indian goods. 

The legislation gives the White House discretion over how the measures are applied and also provides presidential waiver powers. Transactions involving agricultural commodities, food, medicines, medical devices and humanitarian assistance are among those exempted from sanctions and other measures under the relevant provisions. 

The legislation goes beyond energy buyers. It also targets Russia’s leadership and energy sector, along with entities linked to its defence industry and the so-called shadow fleet used to move Russian energy. 

India says it will protect its economic interests 

New Delhi has responded by stressing that its trade and economic interests will remain central to its approach. 

The Ministry of External Affairs said India has already discussed the issue at high levels with US officials and has conveyed the possible consequences for both India-US relations and the international energy market. 

The government also plans to work with Indian trade and industry bodies as it assesses the implications of the legislation. 

Energy remains an important part of that calculation. India imports more than 88% of the crude oil it consumes, according to data cited in the Livemint report. 

Its sourcing pattern has changed considerably in recent years. Before 2022, Gulf countries supplied more than 55% of India’s crude, while Russia accounted for less than 15%. Russian crude has since taken a much larger place in the country’s import mix. 

What the new US law ultimately means for Indian exporters is not yet settled. The size of any tariff, the products covered and the implementation schedule would depend on how the legislation is put into effect. 

That uncertainty now sits alongside the unfinished India-US trade negotiations, leaving New Delhi to navigate the two issues at the same time.